Where The Real Inflation Is

Tyler Durden's picture


Despite being dismissed as "noise", inflation is here and it's rising. As the following chart shows, if you eat, drive, use electricity, or live in a house, you are paying dramatically more this year than you did last year. On the bright side, if you wear clothes or use electronics, prices have dropped (but remember deflation is bad...). How much longer can the Fed pull the wool over the eyes of the people?



Chart: Goldman Sachs

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Fri, 07/18/2014 - 19:58 | 4975849 buzzsaw99
buzzsaw99's picture

bullshit. if they are spending more on gasoline than last year it isn't due to rising prices.


Fri, 07/18/2014 - 20:00 | 4975857 Fukushima Sam
Fukushima Sam's picture

Fuck the Fed.

Fri, 07/18/2014 - 20:03 | 4975875 AlaricBalth
AlaricBalth's picture

Consumer electronics prices are falling and Bill Dudley says, "Today you can buy an edible iPad 2 that costs the same as an iPad 1 that is twice as filling,". So what is the problem?

Fri, 07/18/2014 - 20:42 | 4975987 holdbuysell
holdbuysell's picture

Tastes great!

Sat, 07/19/2014 - 02:22 | 4976495 Boris Alatovkrap
Boris Alatovkrap's picture

When subterfuge of worthless paper and rehypothecation derivative is come back to earth from stratosphere (aka Bank-o-sphere™), just watch rapid shift from soft asset to hard asset and accompanying inflation. Buy your popcorn now before is so expensive!

Sat, 07/19/2014 - 09:40 | 4976721 DaveyJones
DaveyJones's picture

the kernel is the hard asset?

Fri, 07/18/2014 - 20:48 | 4976009 Kreditanstalt
Kreditanstalt's picture

Because you can buy similar pads from other makers, with similar quality and features, without the Apple sky-high price...

Still can't eat them, though...

Sat, 07/19/2014 - 11:09 | 4976894 AGuy
AGuy's picture

You stand corrected sir:



You can eat Ipads, Ipods, and Iphones,

Fri, 07/18/2014 - 19:57 | 4975850 Fukushima Sam
Fukushima Sam's picture

I traveled out of my little bubble recently and was shocked to find that a chicken sandwich combo at Sonic is now about $6.50.  That's insane!

Fri, 07/18/2014 - 20:04 | 4975877 tmosley
tmosley's picture

No shit.  I've been on a diet the last few months, and went off it today to find that prices have gone crazy.  I think I'll go back on it...

Fri, 07/18/2014 - 19:59 | 4975858 Cognitive Dissonance
Cognitive Dissonance's picture

"How much longer can the Fed pull the wool over the eyes of the people?"

For as long as the people allow it.

Sat, 07/19/2014 - 07:58 | 4976051 AlaricBalth
AlaricBalth's picture

Each new generation tolerates that which the previous generation deemed abhorrent.

Sat, 07/19/2014 - 09:41 | 4976726 DaveyJones
DaveyJones's picture

no wonder wool and sheep are related

Fri, 07/18/2014 - 20:00 | 4975862 Yen Cross
Yen Cross's picture

  My bung hole is inflated from all that wood pulp in my 90% lean Mc Meat.

Fri, 07/18/2014 - 20:01 | 4975867 buzzsaw99
buzzsaw99's picture


Sat, 07/19/2014 - 11:23 | 4976921 kurt
kurt's picture

Wooden it be lovely?

Fri, 07/18/2014 - 20:02 | 4975870 ptolemy_newit
ptolemy_newit's picture

The red is the normal for Chinese.   I suggest everyone get use to the idea of working just to survive "slave to my mortage" is a famous chinese TV show.

The result is a dumbing down of society to the point where you just accept what they give you.  nothing in China looks like exactly what you are trying to buy.  No food looks like the menue pic.


By the way!  after 5 years of commenting i would like to see my history?  seems deleted ?  why only me?

anyone know if it is somewhere i can recover.

pleae Tylor help with understanding

Fri, 07/18/2014 - 20:09 | 4975885 rubiconsolutions
rubiconsolutions's picture

"By the way!  after 5 years of commenting i would like to see my history?  seems deleted ?  why only me?

anyone know if it is somewhere i can recover."


Sure. There's an outfit in Bluffdale, Utah that specializes in data retention and recovery. National something or other. Look it up.

Fri, 07/18/2014 - 20:13 | 4975902 buzzsaw99
buzzsaw99's picture

yeah, that's the only place with a computer big enough to store all of my comments. :snark:

Fri, 07/18/2014 - 20:37 | 4975943 Yen Cross
Yen Cross's picture

 No computer can ever replace the kind intuitive insights you've shared with Z/H Buzz.

  I'm a better man for making your acquaintance...

  Your 15 minute break is over bitch. Those unicorns can't water(piss)on the crops if you stop feeding them canned Chinese air!

Fri, 07/18/2014 - 20:20 | 4975927 Urban Redneck
Urban Redneck's picture

Try this


or add your own parameters
(far more useful than the built in ZH search feature)

Fri, 07/18/2014 - 20:24 | 4975941 r00t61
r00t61's picture

I think that as old articles get moved to the archived servers, the associated post histories go there as well.  I remember when we could see many months worth of a user's posting history.  Now it seems more like a few weeks.

The up/down arrow history also seems to get flushed when an article goes to archive.

Fri, 07/18/2014 - 21:31 | 4976128 are we there yet
are we there yet's picture

You can retreive data if you have a 'Learners' permit.

Fri, 07/18/2014 - 20:08 | 4975878 atomp
atomp's picture

Gas last summer was about where it is today.  Check the 1 year here: http://www.gasbuddy.com/gb_retail_price_chart.aspx

So are Americans driving a lot more, in bigger cars, or do they just not know what the hell they spend their money on, making this chart worthless. (like most charts)


edit: buzzsaw beat me to the point

Fri, 07/18/2014 - 20:09 | 4975886 Spastica Rex
Spastica Rex's picture

On the bright side, if you wear clothes... prices have dropped

The Tyler's don't shop at Goodwill, I see.

Fri, 07/18/2014 - 20:42 | 4975988 Seasmoke
Seasmoke's picture

or Marshall's

Sat, 07/19/2014 - 09:43 | 4976728 DaveyJones
DaveyJones's picture

luckily less jobs means more casual clothes

Fri, 07/18/2014 - 20:13 | 4975900 Racer
Racer's picture

Nom nom, nom nom, this plastic is soooo filling and eases my hunger pains for a nanosecond

Fri, 07/18/2014 - 20:19 | 4975920 kurt
kurt's picture

When will YOU get serious about dumping the Fed?

Fri, 07/18/2014 - 20:28 | 4975948 Raymond K Hessel
Raymond K Hessel's picture

Just as soon as I figure out how to buy shit without the Fed.

(Editor's note: I meant to capitalize the "I" to match kurt's "YOU" but realized that it's already capitalized...DOH!)

Fri, 07/18/2014 - 20:45 | 4975994 Curiously_Crazy
Curiously_Crazy's picture

Maybe it's just one small step, but Kalgoorlie Hotel (Kalgoorlie is a gold mining town no less) will accept gold for payment: "The hotel will accept nuggets, bars and "anything as long as it's gold"."


Fri, 07/18/2014 - 20:20 | 4975923 noel8
noel8's picture

More proofs that the US Government deliberately and grossly mislead the inflation :

Fri, 07/18/2014 - 20:53 | 4976025 Decimus Lunius ...
Decimus Lunius Luvenalis's picture

Consumer's back baby!

Fri, 07/18/2014 - 21:18 | 4976094 Icewater Enema
Icewater Enema's picture

Can't make the inflation claim without more background data. More spending due to price increase or due to shift in spending on substitutes?  Grocery spending up and dining out down? So more people are eating more often at home. Need to see price data not spending.

Fri, 07/18/2014 - 21:20 | 4976103 kchrisc
kchrisc's picture

For those that understand fraudulent-reserve banking and how the banksters steal the people's wealth, price-inflation is seen as what it truly is: a symptom of their theft.

Fri, 07/18/2014 - 23:40 | 4976385 IRC162
IRC162's picture

Where's the property tax inflation calc?  

But hey,  pretty soon the influx of new immigrants means that my lawn care and real estate services expense is about to drop.   Too bad for Hector that he didn't properly calculate for increased competition and the ensuing downward wage pressure on HIS own wages.  

Maybe when Hector is working twice as hard for half the revenue, because another half million new citizens are here to do the jobs 'Americans don't want to do' ,  he may finally understand that he was used to further another habitual liar's political career.  Ain't it grand to self-actualize as political fodder?   

Sat, 07/19/2014 - 04:44 | 4976550 kareninca
kareninca's picture

Prunes, too.  I buy them once a year or so for a recipe.  For years at TJs they were $1.89.  Then they crept over the past few years to $2.19; $2.69.  Went to buy them today:  $3.29!!!!!!  You really notice when it is a once a year purchase.

In Palo Alto, the store that is really hopping is the Grocery Outlet that just opened.  There is nothing like it in town  -  actually discounted food!!!!  The City Council hated allowing it to be there; it just doesn't fit the image of the town, but they were desperate (per the deal they had cut with the developer) to put a grocery store in the space.  A couple of fancy grocery stores were tried over the past few years; they went belly up; there are too many of those already.  This store is not going belly up; it is full of shoppers.

Well, Piazza's ($3.69 for a single organic cucumber) is also full of shoppers.  Safeway is not doing so well.

Sat, 07/19/2014 - 07:27 | 4976628 OC Sure
OC Sure's picture

Let us also identify the exact cause of the "noise." It must be theft from productive work, counterfeiting, that is the source of the "noise:"


"The tyranny of modern economics (TOME) began when the term money, the concept of money, was falsely redefined as if it could become detached from the percepts from which it was conceived. Money went from being defined as a unit of measuring one's work to produce a product that meets the demands of others to being named as just a medium of exchange. The tyranny of modern economics thereby changed the course of human events quite simply by redefining a word from what that word fundamentally represents to what it does not. Tyranny's obfuscation of the language then is clear. They have been naming money for so long as just a medium of exchange that no one asks anymore, "the exchange of what?"

There is no doubt that a characteristic of money is that it acts as an intermediary between two parties that are making an exchange. This one characteristic though is not its fundamental characteristic. Money's fundamental characteristic defines why money was invented in the first place and this characteristic then determines that money can be used as a medium of exchange. The necessity of measuring one's productive work by agreed upon units came about as the means to exchange the products of one's work which was simple with someone else's work which was complex (or with work that is performed better versus worse), and vice versa. That money mediates this exchange is true and the ones who first coined this terse description probably did know and understand why money was invented. The phrase "it is a medium of exchange" most likely developed as shorthand with full recognition of why money came to be and that it necessarily represents the exchange of something for something. The phrase was coined so long ago that then one did not have to question what was being exchanged because it was taken as a given that the medium as money was indeed money. However, the long train of abuses and usurpations that have occurred since then cannot afford opponents of tyranny to view our medium of exchange as money any longer because money, as a medium of exchange, competes with another medium of exchange that is counterfeit.

The modern definition of money that defines money as just a medium of exchange is wrong. That it is a medium of exchange is a characteristic of money but it is not the essence of what money is; it is not money's nature since it indicates nothing of its cause. What we choose to describe something as does not define what it is; a thing is what it is first and then defined correctly in accord with that fact. Just as money can mediate an exchange, so too can counterfeit. Therefore, since this is a characteristic of each of them then a more precise defining characteristic must be identified for both of them separately: MONEY IS THE REPRESENTATION OF PRODUCTIVE WORK AS IDENTIFIED BY AN EXCHANGE OF SOMETHING FOR SOMETHING; COUNTERFEIT IS THE REPRESENTATION OF STEALING FROM PRODUCTIVE WORK AS IDENTIFIED BY AN EXCHANGE OF NOTHING FOR SOMETHING. Modern thieves depend upon their victims to not understand the difference between money and counterfeit; they depend on their victims' preoccupation with the perception of the units themselves and not the conception of why the units became necessary at all and how that necessity determines which units originate as money and which units originate as counterfeit."




Sat, 07/19/2014 - 09:51 | 4976629 IRC162
IRC162's picture

Sat, 07/19/2014 - 09:50 | 4976631 IRC162
IRC162's picture


But hey,  pretty soon the influx of new immigrants means that my lawn care and real estate services expense is about to drop.   Too bad for Hector that he didn't properly calculate for increased competition and the ensuing downward wage pressure on HIS own wages.  

Maybe when Hector is working twice as hard for half the revenue, because another half million new citizens are here to do the jobs 'Americans don't want to do' ,  he may finally understand that he was used to further another habitual liar's political career.  Ain't it grand to self-actualize as political fodder?   

Sat, 07/19/2014 - 09:13 | 4976674 northerngirl
northerngirl's picture

Cut back on eating out after I went to a family restaurant, and the cost of a burger, fries and drink was $15.00(including tax, and tip).

Sat, 07/19/2014 - 10:09 | 4976762 kill switch
kill switch's picture

How much longer can the Fed pull the wool over the eyes of the people?



Are you serious??? 80% Of Amerikkans don't even know what the fed is....WTF

Sat, 07/19/2014 - 10:17 | 4976781 gmak
gmak's picture

Prices move before wages. For anyone living within their means, deflation = good. inflation = bad.  the only time inflation can be good for a wage earner is if they have a fixed rate debt and their wages grow faster than the new debt they take on to pay the interest as they max out.


Inflation is best for those who own any type of real productive assets - including land. Most wage earners don't have these things. It takes old money; money that is old enough to have come from some forgotten crime.


Inflation is good for governments that have promised the moon and can't even deliver a step stool. Inflation robs the hoi polloi of purchasing power, and reduces the actual value of any benefits that they have been promised. The only bitch in the inflation crowd for .gov is when the debt has to be rolled over (wonder why Treasury is surveying brokers about 30 year debt? The Fed has created a shortage of collateral which is exacerbated by reverse repos to help the squids leverage up more. What a clever plan for Treasury to say that they will provide 30 year debt to be used as collateral - which the FED will never buy up or reverse repo. If the FED vaccuums up all the short term, and squids are forced to use 30 year, creating a rising demand for the stuff, then the treasury can simply push that garbage out on the world and extend the average maturity of their debt so that any sudden tsunami of inflation will not hit the interest line in the budget).


If you allow yourself to be a little bit paranoid, the sociopaths  and their schemes stand out more starkly than aliens to the guy wearing the special sunglasses. :-)

Sat, 07/19/2014 - 10:51 | 4976858 Vooter
Vooter's picture

If you live and drive in the NYC area, you know full well that highway, bridge and tunnel toll increases are COMPLETELY out of control and have been for the last decade. Wanna drive your car and trailer ONCE over the George Washington Bridge (or through the Holland or Lincoln tunnels)? That'll be $52, please! ($68 if you're paying cash...) But better hurry--those prices increase to $60 and $76 on December 7...

Sat, 07/19/2014 - 15:24 | 4977642 oudinot
oudinot's picture


I haven't been over the GW bridge since 1998.  Things have changed.

Sat, 07/19/2014 - 17:44 | 4978000 kareninca
kareninca's picture

oh. my. god.  $68; that is insane.

Sat, 07/19/2014 - 22:00 | 4978767 Vooter
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